HELPING POWER CONSUMERS.

Shannon News, 21 September 1923, Page 3

HELPING POWER CONSUMERS.

SCHEME TO AVOID LAST MINUTE RUSH. At Tuesday’s meeting of the Horowhenua Rower Board, the question, of the charge of interest on'moneys advanced by the Board to. consumers for the purpose of installing electric power, was. dealt with at length,, as the result of a recommendation embodied in the engineer’s report, as as follows: “In connection with the grouping system, I would advise a. resolution of the. Board to the effect that interest on moneys advanced to consumers for installations be not collected 'until the date of switching on of electricity takes places.” Mr A. A. Brown considered that interest on such money should be collected only from the time the current was available.

Mr Gunning said he would go further, and would suggest that the Board allow interest at the rate of 6 per cent, on the cost pf Installation, in the case of those people who installed their own systems, from the time the installation wag done, until the current was available. The Board’s Installation Officer would shortly be conducting a canvass of the 1 district, but as things were, farmers would be inclined to put in installations only at the last moment, so as not to have money lying idle for some months. The result would be a rush at the last moment, and a number of suppliers who) would not get their installations completed on time, and consequent loss of revenue to the Board.

. The chairman, Mr G. A. Monk, said that this was not a question which should be taken up too. lightly nor decided rashly. He was not sure they had authority to do as Mr Gunning suggested, and had further no fund from which such payments might be made. In cases such as had been put forward, the best thing prospective consumers could do, would be, not to put in installations themselves, but to take advantage of the Board’s scheme of financial assistance. They -could get. 7 per cent, of the cost of the installation, and as it was not proposed to collect interest on this until current was available, they could have the use of the money until that time, and then repay the amount before the charge was made. They would have to pay 25 per cent, of the cost under this scheme, and the Board would then carry out the work. Mr A. Ross said the position was that, if a consumer put in an installation, he would have this amount lying* unproductive until current was available. Mr Gunning’s was a good idea but it would toe too expensive to keep accounts for all these people. A system of rebates to such consumers, over a couple of months, would be better, and would have the same effect.

The chairman said that there, was a danger of running into such a position as would require some getting out of later. In some parts of the district electricity would not be available for some time, .and under a system of granting rebates, those who were getting current would have to pay for this. He considered that the Board’s financial proposals would cover the difficulty, hut it would be better to set up a committee to go thoroughly into tfhe matter. : Th.'e Board had gone into these matters when the district was being formed and had decided to borrow extra money to finance consumers. At that time there was no question of allowing interest to stand over, and it was on this principle that the loan had been carried. He considered the Board’s proposals very generous and the. people who did'not think so, did not’ want electricity.

Mr Ross suggested that this portion of the Engineer’s report should he deleted until the matter could be finally decided. He did not consider that it was fair that the man who received assistance should have this advantage over those who put in their own installations.

The chairman said that this could not be done as this matter had been decided some months agb.

Mr Brown moved a resolution that interest on money advanced to consumers be payable from the date of (he switching-on of electricity. The chairman contended that this did not cover the case. A new issue uad been raised in the proposal that (hey should pay interest- on the cost of installations of private consumers. Mr Boss said that this was not posable but a rebate might be given. In answer to> Mr Gunning, the Engineer said he would not care to give tin opinion as to the 1 practicability ol che suggestion until he had time to into it thoroughly. Mr Gunning said that the position was that those who accepted the 'Board’s financial assistance got the use of the money for several months free of interest, whilst, the man who paid outf of his own pocket got nothing. The chairman: Let him take our offer.

Mr Gunning Then, the people who have put their names d sown as putting in their own installations will change over. The chairman: That will be all right.; we are prepared for that. Mr Gunning contended that it was not right to assist one section of the community and not the other. Either they should assist the cash man or neither. The chairman pointed out that the Board had borrowed money for this purpose, and as the loan had to be lifted, at so much per month they would gain nothing by doing as was suggested. He did not think, however, that there would be any difficulty on this head. The group system was so much cheaper than private installation, that most people would prefer to get their wiring done under this scheme.

Mr Kilsby said that, when Mr Gunning had first put forward his suggestion it had rather appealed to him, but, oh consideration he thought they would bet-tier keep to the old idea. The chairman pointed out that the present idea was that interest was chargeable from the time of installa-

tion, but would probably not be collected. It was hardly likely that everybody in the district would join up—probably not more than 50 per cent, would at first, but he did not tjliink that they would lose many through -not giving the concession asked for. The Engineer’s report waß adopted.